Advanced Flower Capital (AFC) reported a FY 2025 net loss from continuing operations of USD 20.7 million, or USD 0.95 per basic share. Distributable earnings were USD 8.7 million (USD 0.39 per basic weighted average share). Interest income was USD 31.3 million (down 39.8% YoY), with management citing lower fee income, lower OID income, less capital deployed, lower PIK income, and USD 8.3 million of lower interest income due to loans on nonaccrual status. Net interest income totaled USD 24.6 million, while interest expense was USD 6.8 million. Total expenses were USD 15.7 million, including USD 6.8 million of stock-based compensation and USD 1.2 million of BDC conversion expenses. Provision for current expected credit losses was USD 22.6 million. Book value per share was USD 7.46 at December 31, 2025. Cash totaled USD 38.6 million at year-end, and net cash provided by operating activities from continuing operations was USD 11.2 million. AFC said it completed a strategic transition from REIT to BDC status effective January 1, 2026, and intends to elect regulated investment company tax treatment beginning with the taxable year ending December 31, 2026. As of December 31, 2025, the loan portfolio comprised 15 loans with aggregate commitments of USD 332.6 million and outstanding principal of USD 317.4 million, including three loans on nonaccrual status. During 2025, AFC entered into new senior secured credit facilities including USD 15.0 million with Private Company U and USD 14.0 million with subsidiaries of Private Company V (USD 12.4 million drawn as of year-end), was repaid in full on loans including Private Company J (USD 23.2 million principal; USD 0.9 million exit fees) and Private Company T (USD 7.7 million principal), and repurchased USD 13.0 million of its 2027 Senior Notes at 96.3% of par, generating a USD 0.4 million gain; USD 77.0 million of the notes remained outstanding at December 31, 2025. AFC also placed the loan to Private Company P on nonaccrual effective June 1, 2025 and later reached a settlement, receiving approximately USD 10.0 million, including USD 6.0 million financed via a new loan to Private Company W.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Advanced Flower Capital Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001628280-26-014392), on March 04, 2026, and is solely responsible for the information contained therein.
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